A-46743, JANUARY 26, 1933, 12 COMP. GEN. 510

A-46743: Jan 26, 1933

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ECONOMY ACT - PERCENTAGE REDUCTIONS - COOPERATIVE EMPLOYEES WHERE THE ENTIRE AMOUNT OF THE SALARY OF INDIVIDUAL OFFICERS OR EMPLOYEES IS PAID BY THE FEDERAL GOVERNMENT FROM APPROPRIATED FUNDS OVER A DEFINITE PERIOD OF TIME. THE 8 1/3 PERCENT REDUCTION IS REQUIRED ONLY DURING THE PERIODS THE SALARIES ARE ULTIMATELY PAID FROM FEDERAL FUNDS AND NOT DURING THE PERIODS THE SALARIES ARE ULTIMATELY PAID FROM STATE OR PRIVATE FUNDS. IT WAS HELD THAT INSPECTORS "WHOSE ENTIRE SALARIES ULTIMATELY DO NOT CONSTITUTE A CHARGE AGAINST THE FEDERAL TREASURY ARE NOT WITHIN THE DEFINITION OF THE TERMS "OFFICER" AND "EMPLOYEE" AS USED IN SECTION 104 (A) OF THE LEGISLATIVE APPROPRIATION ACT APPROVED JUNE 30. THEIR COMPENSATION IS NOT SUBJECT TO FURLOUGH DEDUCTION OR IMPOUNDING.'.

A-46743, JANUARY 26, 1933, 12 COMP. GEN. 510

ECONOMY ACT - PERCENTAGE REDUCTIONS - COOPERATIVE EMPLOYEES WHERE THE ENTIRE AMOUNT OF THE SALARY OF INDIVIDUAL OFFICERS OR EMPLOYEES IS PAID BY THE FEDERAL GOVERNMENT FROM APPROPRIATED FUNDS OVER A DEFINITE PERIOD OF TIME, AND FROM STATE OR PRIVATE SOURCES OVER OTHER SEPARATE AND DISTINCT PERIODS OF TIME, THE 8 1/3 PERCENT REDUCTION IS REQUIRED ONLY DURING THE PERIODS THE SALARIES ARE ULTIMATELY PAID FROM FEDERAL FUNDS AND NOT DURING THE PERIODS THE SALARIES ARE ULTIMATELY PAID FROM STATE OR PRIVATE FUNDS.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF WAR, JANUARY 26, 1933:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF JANUARY 11, 1933, AS FOLLOWS:

1. BY RULING OF THE COMPTROLLER GENERAL OF SEPTEMBER 22, 1932, A 44537, IT WAS HELD THAT INSPECTORS "WHOSE ENTIRE SALARIES ULTIMATELY DO NOT CONSTITUTE A CHARGE AGAINST THE FEDERAL TREASURY ARE NOT WITHIN THE DEFINITION OF THE TERMS "OFFICER" AND "EMPLOYEE" AS USED IN SECTION 104 (A) OF THE LEGISLATIVE APPROPRIATION ACT APPROVED JUNE 30, 1932, AND THEIR COMPENSATION IS NOT SUBJECT TO FURLOUGH DEDUCTION OR IMPOUNDING.' IT WAS HELD FURTHER IN THAT RULING THAT "THE CONDITIONS OF EXCEPTION (7) TO THE DEFINITION OF "OFFICER" AND "EMPLOYEE" CONTAINED IN SECTION 104 (A) OF THE ACT ARE NOT MET IF ANY PART OF THE SALARY OF THE OFFICER OR EMPLOYEE DURING THE FISCAL YEAR 1933 IS PAID FROM THE FEDERAL TREASURY.'

2. IN THE ENGINEER DEPARTMENT AT LARGE, BALTIMORE, MARYLAND, AN INSPECTOR HAS BEEN EMPLOYED DURING THE PRESENT FISCAL YEAR ON TWO SEPARATE OCCASIONS ON TEMPORARY JOB EMPLOYMENT. THIS EMPLOYEE WAS NOT EMPLOYEED FROM JULY 1 TO SEPTEMBER 5, 1932. FROM SEPTEMBER 6 TO SEPTEMBER 21, 1932, HE WAS EMPLOYED ON A TEMPORARY JOB ON PRIVATE WORK. HE WAS PAID FROM FEDERAL FUNDS WITHOUT THE EIGHT AND ONE-THIRD PERCENT DEDUCTION UNDER THE ECONOMY ACT AND THE AMOUNT SO PAID WAS REIMBURSED BY PRIVATE PARTIES.

3. ON SEPTEMBER 21, 1932, THE TEMPORARY JOB EMPLOYMENT WAS TERMINATED AND THE EMPLOYEE WAS NOT AGAIN EMPLOYED UNTIL OCTOBER 24, 1932, WHEN NEED AROSE FOR THE SERVICES OF AN INSPECTOR ON PUBLIC WORK, AND THIS MAN WAS ENGAGED FOR THAT DUTY. PAYMENT FOR HIS SERVICES UNDER THIS EMPLOYMENT HAS BEEN MADE FROM THE FEDERAL TREASURY, AND THE EIGHT AND ONE-THIRD PERCENT DEDUCTIONS REQUIRED UNDER THE LEGISLATIVE APPROPRIATION ACT OF JUNE 30, 1932, HAVE BEEN MADE.

4. WHEN THIS MAN WAS EMPLOYED ON PRIVATE WORK FROM SEPTEMBER 6 TO SEPTEMBER 21, 1932, IT WAS NOT KNOWN THAT HE WOULD LATER BE NEEDED FOR PUBLIC WORK, AND IT WAS IMPOSSIBLE TO FORESEE THAT HE WOULD BE NEEDED FOR SUCH WORK. I AM INCLINED TO THE VIEW THAT SINCE EACH TEMPORARY EMPLOYMENT WAS COMPLETE IN ITSELF AND EACH INDEPENDENT OF THE OTHER, AND SINCE THE FIRST TEMPORARY JOB WAS ENTIRELY ON PRIVATE WORK AND THE AMOUNT OF THE COMPENSATION REIMBURSED IN FULL BY PRIVATE PARTIES, THE EMPLOYMENT ON PRIVATE WORK IS TO BE REGARDED AS ON THE SAME BASIS AS THAT OF THE EMPLOYEES REFERRED TO IN PARAGRAPH TWO OF YOUR RULING OF AUGUST 9, 1932 (A -43819), TO THE SECRETARY OF THE INTERIOR. HOWEVER, THERE IS SOME DOUBT IN MY MIND BECAUSE OF THE FACT THAT IN YOUR RULING OF SEPTEMBER 20, 1932 (A-44537) IT IS STATED THAT THE CONDITIONS "* * * ARE NOT MET IF ANY PART OF THE SALARY OF AN OFFICER OR EMPLOYEE DURING THE FISCAL YEAR 1933 IS PAID FROM THE FEDERAL REASURY" AND THIS LANGUAGE MIGHT BE TAKEN TO INDICATE THAT ANY SALARY PAID DURING THE FISCAL YEAR 1933 MUST BE CONSIDERED IN DETERMINING WHETHER AN EMPLOYEE'S SALARY IS SUBJECT TO DEDUCTION UNDER THE ECONOMY ACT.

5. A RULING, THEREFORE, IS REQUESTED AS TO WHETHER THE PERIOD OF TEMPORARY JOB EMPLOYMENT ON PRIVATE WORK MAY BE CONSIDERED, SO FAR AS THE LEGISLATIVE APPROPRIATION ACT APPROVED JUNE 30, 1932, IS CONCERNED, AS INDEPENDENT OF THE LATTER PERIOD OF EMPLOYMENT ON PUBLIC WORK, AND WHETHER IT IS PROPER TO REQUIRE NO DEDUCTION UNDER THE ACT TO COVER THE FIRST TEMPORARY JOB EMPLOYMENT.

THE DIVISION IN THE PAYMENT OF SALARY OF OFFICERS AND EMPLOYEES BY THE FEDERAL GOVERNMENT ON THE ONE HAND, AND STATE OR PRIVATE SOURCES ON THE OTHER, REFERRED TO IN FORMULATING THE PRINCIPLES STATED IN THE CITED DECISIONS, WAS INTENDED AS RELATING TO PAYMENTS MADE DURING THE SAME PERIOD OF TIME OR UNDER A CONTINUOUS EMPLOYMENT. IN ANY CASE, WHERE THE ENTIRE AMOUNT OF THE SALARY OF INDIVIDUAL OFFICERS OR EMPLOYEES IS PAID BY THE FEDERAL GOVERNMENT FROM APPROPRIATED FUNDS OVER A DEFINITE PERIOD OF TIME, AND FROM STATE OR PRIVATE SOURCES OVER OTHER SEPARATE AND DISTINCT PERIODS OF TIME, THE 8 1/3 PERCENT REDUCTION IS REQUIRED ONLY DURING THE PERIODS THE SALARIES ARE ULTIMATELY PAID FROM FEDERAL FUNDS, AND NOT DURING THE PERIODS THE SALARIES ARE ULTIMATELY PAID FROM STATE OR PRIVATE FUNDS.

THEREFORE, IN THE CASE PRESENTED, AND ANSWERING SPECIFICALLY THE QUESTION CONTAINED IN YOUR CONCLUDING PARAGRAPH, YOU ARE ADVISED THAT NO DEDUCTION AND IMPOUNDING WAS REQUIRED FROM THE SALARY PAID DURING THE PERIOD FROM SEPTEMBER 6 TO 21, INCLUSIVE.